Foreign direct investments and economic growth in Congo-Brazzaville : A study by the vector approach with error correction (VECM) for the period from 1980 to 2016

Abstract

This article analyzes the effects of foreign direct investment on economic growth in Congo-Brazzaville over the period from 1980 to 2016. The empirical analysis is based on the vector error correction model (VECM). The results show that in the short term, human capital, net investments and the exchange rate impact economic growth. In the long run, economic growth is affected by foreign direct investment, human capital, terms of trade, net investment, the exchange rate and domestic credits distributed to the private sectors. Moreover, in the short and long term, the econometric results show that human capital, net investments and the exchange rate influence this growth. These results have important implications for economic policy in Congo-Brazzaville